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I think it would be even scarier than that. I imagine very few people would even issue debt. I know I would not. People default on debt all the time now and the

I think it would be even scarier than that. I imagine very few people would even issue debt. I know I would not. People default on debt all the time now and there is some legal recourse. I can only imagine how many people would default if there was no consequence. So now even people with every intention to repay their debt won't even get it. I believe that this would lead to an even bigger class gap because people who don't have the money to start businesses, buy houses or cars, etc no longer can get a loan to do it. I think it really would create a bigger divide between the Haves and the Have-Nots. I'm not saying that having a bunch of debt is good. But imagine where you'd be right now if you couldn't get a student loan for an education. Or finance a car or a house. I'm pretty sure I would not be where I am now if I hadn't gone to school... which I would not have been able to do without a student loan. And I never would have been able to get a house without a loan.

scarmig 12y ago
My perspective is that a whole lot of our economic problems (in the USA) stem from personal debt. It wouldn't be the end of the world if people typically had to earn enough money to own a house before buying a house--in fact, it would decrease home prices, since the ability to get mortgages and the promise of government violence if you don't pay them back inflates the cost of housing stock. And student loans are literally slavery--they similarly inflate educational expenses, and even worse can't be discharged in bankruptcy. An end result is otherwise educated people face a large marginal tax rate that cuts into productivity, and far too many choosing education that is mostly a waste of money since they don't have to pay for it, until some unforeseen point in the future. I think it's also easy to overstate how much loaning would decrease. The widespread use of credit scores when issuing loans belies the idea that it's only state violence that ensures people pay back debts.

scarmig 12y ago

My perspective is that a whole lot of our economic problems (in the USA) stem from personal debt. It wouldn't be the end of the world if people typically had to earn enough money to own a house before buying a house--in fact, it would decrease home prices, since the ability to get mortgages and the promise of government violence if you don't pay them back inflates the cost of housing stock. And student loans are literally slavery--they similarly inflate educational expenses, and even worse can't be discharged in bankruptcy. An end result is otherwise educated people face a large marginal tax rate that cuts into productivity, and far too many choosing education that is mostly a waste of money since they don't have to pay for it, until some unforeseen point in the future. I think it's also easy to overstate how much loaning would decrease. The widespread use of credit scores when issuing loans belies the idea that it's only state violence that ensures people pay back debts.